Oracle India Pvt. Ltd. vs DCIT

Parties Involved

Facts Summary

This appeal by Oracle India Pvt. Ltd. pertains to the Assessment Year 2005-06. The case involves a reassessment order dated March 19, 2014, under section 147 of the Income Tax Act, 1961. The appellant disputes the addition of notional interest amounting to Rs. 302,117,692 on outstanding receivables from Oracle Systems Corporation, USA (OSC). The appellant argues that no such interest has been actually charged or received, and that only real income can be charged to tax, not hypothetical or notional income. The appellant also contends that the allegation of delay in realization of receivables from OSC was factually incorrect.…

Legal Issues

• 1. Whether the order dated August 27, 2020, passed under section 250 of the Act by the CIT(A) is bad in law to the extent it confirmed the addition(s) made in the reassessment order dated March 19, 2014.
• 2. Whether the CIT(A) erred in confirming the addition made by AO towards notional interest amounting to Rs. 302,117,692 on outstanding receivables from OSC by applying an ad hoc interest rate of 12%.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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